To recover investors' money, capital markets regulator Sebi on Monday said it will auction properties belonging to companies of MPS Group, Vibgyor Group, Prayag Group, Pailan Group, and Multipurpose BIOS India Group on June 30 for a reserve price of nearly Rs 64 crore.
These companies had raised funds from investors without complying with regulatory norms.
The 20 properties put on the block, which include land parcels, storied buildings, an office space, a commercial space, and a flat, are situated across West Bengal, the Securities and Exchange Board of India (Sebi) said in a notice.
Inviting bids, Sebi said an auction of the properties will be conducted online mode on June 30 from 11 AMto 1 PM.
Out of the properties being put on the block, 13 belong to the MPS Group of companies, 3 relate to Multipurpose BIOS India Group of companies, 2 belong to the Vibgyor Group of companies, and one each of the Prayag Group of companies, and Pailan Group of companies.
The total reserve price of these properties is pegged at about Rs 64 crore, as per the notice.
Quikr Realty has been engaged by Sebi to assist it in the sale of the properties.
The regulator said the bidders should make their independent inquiries regarding the encumbrances, title of properties put on auction, and claims, among others, before submitting their bids.
''The properties are being sold with all the existing and future encumbrances whether known or unknown to Sebi. Sebi shall not be responsible in any way for any third party claims/rights/dues, etc,'' the notice said.
Sebi had earlier attached some of their properties after directives asking them to refund investors' money along with interest did not materialize. In this matter, the watchdog had also attached demat and bank accounts. MPS Group of companies includes MPS Greenery Developers that collected Rs 1,520 crore from investors through illegal Collective Investment Schemes (CIS).
Vibgyor Allied Infrastructure had issued optionally fully convertible debentures to 49,562 investors in 2009 and raised Rs 61.76 crore, and Pailan Group of companies had mopped-up Rs 83.42 crore by issuing non-convertible debentures to 23,685 persons between 2010-11 and 2014-15, Prayag Infotech had made an offer of redeemable preference between 2007-2008 and 2011-12 and mobilized at least Rs 131.37 crore from over 1.57 lakh investors, and Multi-Purpose Bios collected Rs 5.97 crore from more than 1,460 people through redeemable preference shares between the financial year 2007-08 and 2011-12.
These four companies were engaged in fund mobilizing activity through the issue of securities to more than 49 persons without complying with the provisions of the Companies Act, 1956.
(With PTI inputs)
